A full-time judge inquires whether it is permissible to participate as
a limited partner or investor in a development project to construct office
and retail space in a former supermarket plaza. The judge would have no
direct participation in the management or operation of the developed property.
Day-to-day affairs would be handled by a professional management company.
The ownership would be in the form of a L.L.C, limited partnership, or
subchapter S corporation. The judge would not be an officer in the ownership
entity.

The Rules Governing Judicial Conduct allow a judge to hold and manage personal
and family investments, including real estate. 22 NYCRR 100.4(D)(2). The
Rules also prohibit a full-time judge from serving as an officer, director,
general partner, advisor, employee or other active participant in any business
entity, but do not prohibit a judge from being a limited partner in a business
entity. 22 NYCRR 100.4(D)(3).

This Committee has previously advised that a judge may be a limited partner
in a for-profit, real estate enterprise as long as the judge does not take
an active role in the management or control of the business of the limited
partnership. Opinions 89-108 (Vol. IV); 89-130 (Vol. IV); 99-12. Accordingly,
the Committee concludes that the inquiring judge may be a limited partner
in the described enterprise.